Sun Pharma to Acquire US-Based Organon in $11.75 Billion Deal, Its Biggest Overseas Acquisition

Sun Pharmaceutical Industries has announced a major global expansion move with a definitive agreement to acquire US-based Organon & Co in an all-cash transaction valued at $11.75 billion. The deal marks Sun Pharma’s biggest overseas acquisition to date and one of the largest outbound pharma transactions by an Indian company. Under the agreement, Sun Pharma will acquire 100 percent of Organon’s outstanding shares at $14 per share, giving the transaction an enterprise value of $11.75 billion and an equity value of around $3.99 billion.

The acquisition is strategically important because Organon brings a strong global portfolio in women’s health, biosimilars and established medicines. The New Jersey-headquartered company operates in more than 140 countries and has over 70 products across its portfolio. Organon was formed as a spin-off from Merck, known as MSD outside the United States and Canada, in 2021.

Sun Pharma said the deal is aligned with its plan to scale up its innovative medicines business while strengthening its position in established brands and branded generics. The acquisition will also give Sun Pharma a major entry into the biosimilars segment, where the combined company is expected to become the seventh-largest global biosimilar player.

Once completed, the combined entity is expected to rank among the top 25 global pharmaceutical companies, with combined revenue of about $12.4 billion. It is also expected to place Sun Pharma among the top three companies globally in women’s health, giving the Indian drugmaker a stronger platform in a specialised therapeutic area with long-term demand.

Organon reported $6.2 billion in revenue and $1.9 billion in adjusted EBITDA for the year ended December 2025. The company also had debt of $8.6 billion and a cash balance of $574 million. Sun Pharma plans to fund the acquisition through a mix of available cash resources and committed bank financing.

The transaction has already been approved by the boards of both Sun Pharma and Organon. It is expected to close in early 2027, subject to regulatory approvals and approval by Organon shareholders. After completion, Organon will merge with a subsidiary of Sun Pharma, with Organon surviving the merger.

Sun Pharma Executive Chairman Dilip Shanghvi said the transaction offers the company an opportunity to build a stronger and more diversified global platform. Managing Director Kirti Ganorkar described the acquisition as a logical next step in strengthening Sun Pharma’s global business, with potential for synergies and revenue upside over the coming years.

The deal is significant not only for Sun Pharma but also for India’s pharmaceutical industry. It shows how Indian drugmakers are moving beyond traditional generics into higher-value areas such as specialty medicines, branded products, women’s health and biosimilars. For Sun Pharma, Organon gives scale, global reach and an expanded product base; for India’s pharma sector, it signals a new level of ambition in global healthcare consolidation.

Reference:

https://ddnews.gov.in/en/sun-pharma-to-acquire-us-based-organon-in-nearly-11-75-billion-deal/
https://www.organon.com/news/sun-pharma-signs-definitive-agreement-to-acquire-organon/
https://www.reuters.com/business/healthcare-pharmaceuticals/sun-pharma-acquire-organon-1175-bln-all-cash-deal-2026-04-27/
https://www.moneycontrol.com/news/business/sun-pharma-to-acquire-us-listed-organon-in-12-billion-deal-13900040.html